2017 (3) TMI 291

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....ain points which were mounted on electric poles. The view of the department is that the activity of cutting, drilling, punching holes, bending/welding amount to manufacture in the light of the decision of the larger bench of the Tribunal in the case of Mahindra & Mahindra Lted.-2005 (190) ELT 301 (Tri.-LB),the appellant is liable to pay duty on the said activity. In these sets of facts, two show cause notices were issued to the appellant to demand duty alongwith interest and to impose penalty on the appellant. The matters were adjudicated, the demands of duty were confirmed alongwith interest and penalty of Rs. 1 lakh each has been imposed on the appellant. Aggrieved from the said orders, the appellants are before us. 3. Learned Counsel fo....

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....alcutta-2006 (196) ELT400 (SC) to say that welding of poles does not amount to manufacture. She further took support from the decision of this Tribunal in the case of Deepak Galvanising & Engg. Indus.Pvt.Ltd.-2009 (16) STR533 (T-Bang.) and Jyoti Structures Ltd.-2016 (333) ELT 443 (T-Mum.). She also took support from the decision of the Hon'ble High Court in the case of Shapoorji Pallonji & Co.-2005 (192) ELT 93(Bom). 5. On the other hand, learned AR submits that the larger bench of the Tribunal in the case of Mahindra & Mahindra Ltd. held that the activity of cutting, drilling, punching hole bending/welding amount to manufacture and liable to pay duty under heading 73.08. 6. Heard the parties and considered the submissions of both sides. ....

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....and proper. There is no merit in the Revenue s appeals and the same are rejected. And held that the process of cutting, drilling, punching hole does not amount to manufacture. 10. We further find that this Tribunal in the case of Jyoti Structures Ltd.(supra) has observed that the decision in Deepak Galvanising & Engg. Indus.Pvt.Ltd. was challenged by the Revenue before the Hon'ble Andhra Pradesh High Court and the High Court dismissed the appeal filed by the Revenue reported in 2015 (315) A98(AP). 11. In view of the decision of the Hon'ble Andhra Pradesh High Court, we hold that cutting, punching holes does not amount to manufacture. But we find in this case that the activity undertaken by the appellant not only drilling, punching hole....